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Old 03-09-2009, 04:31 PM
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rockdawg21 rockdawg21 is offline
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Default More bad business from another bailed-out bank!

After receiving 45 billion in bailouts, Citi still chooses to reward 3.5 million to Barney Smith brokers. CONGRESS, STAY OUT OF BUSINESS AND LET BAD BANKS AND BAD COMPANIES FAIL!!!!

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Citi spends $3.5M to reward Smith Barney brokers

NEW YORK Embattled banking giant Citigroup Inc. spent about $3.5 million to provide rewards for top-performing advisers at its Smith Barney brokerage unit.

The payments are in lieu of three trips Citi usually plans for its top revenue-generating advisers in the division. Those trips were canceled earlier in the year as Citi attempts to slash costs amid the ongoing economic downturn. Citi has posted five consecutive quarterly losses and received $45 billion in government assistance during the ongoing credit crisis and recession.

Many major financial firms that have received government funding in recent months have drastically scaled back spending on events and perks for employees amid growing anger from politicians in Washington about how they spend money.

Citi said none of the money from the government investment is being used for the rewards.

"This program is funded by operating revenue of Smith Barney and achieves a nearly 80 percent cost saving over some previous recognition programs," Citi spokesman Alex Samuelson said Monday.

Smith Barney generated $2.3 billion in revenue during the final quarter of 2008, a 17 percent decline from the same quarter a year earlier. For the year, revenue fell 3 percent to $10.24 billion.

Smith Barney's top 500 brokers received $3,000 debit cards, according to a story on the bonuses reported Monday by the New York Post. An additional 500 received cards for $2,000 each, with another group receiving $1,000 each.

"We will prudently balance the recognition and development needs of our best advisers with the need to manage our business during this difficult environment," Samuelson said.

As part of its ongoing plans to reduce assets and try to regain profitability, Citi is selling a majority stake in Smith Barney to Morgan Stanley. The pair will merge their brokerage operations into a joint venture, with Morgan Stanley owning a majority stake in the firm.

Late last month, Citigroup and the Treasury Department agreed on a deal that will give the government up to a 36 percent stake in Citi. The government, along with other private investors, will convert some of their $45 billion in preferred stock into common shares. If the maximum amount of preferred stock is converted, current common stockholders will see their ownership stake fall to about 26 percent.

Citi has been among the hardest hit banks by rising loan losses and defaults as well as write-downs on the value of certain investments, especially those tied to the souring residential real estate market.

Shares of Citi were steady at $1.03 in late morning trading Monday. They have traded as low as 97 cents and are down 96 percent from their 52-week high of $27.35 last April 28.
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Old 03-09-2009, 04:33 PM
Miss Foxy
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Originally Posted by rockdawg21
After receiving 45 billion in bailouts, Citi still chooses to reward 3.5 million to Barney Smith brokers. CONGRESS, STAY OUT OF BUSINESS AND LET BAD BANKS AND BAD COMPANIES FAIL!!!!
Thats right!!! Greedy corporations!!!
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Old 03-09-2009, 06:06 PM
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I'm afraid we are going to see more and more of this unfortunately! Where is Moose btw? I wonder what he thinks about Obama's plan so far? It's done wonders for the country, don't you think?
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Old 03-09-2009, 06:19 PM
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Originally Posted by CAVEMAN
I'm afraid we are going to see more and more of this unfortunately! Where is Moose btw? I wonder what he thinks about Obama's plan so far? It's done wonders for the country, don't you think?
Well, this was part of the bailout from Bush, but Obama is going to just continue with this crap. Even though his campaign was all about change, it's still more of the same - bailouts for bad companies. The only change people will see from Obama's administration will be in their pockets.
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Old 03-09-2009, 06:21 PM
Miss Foxy
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Originally Posted by rockdawg21
Well, this was part of the bailout from Bush, but Obama is going to just continue with this crap.
Here we go.......again
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Old 03-09-2009, 06:24 PM
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Quote:
Originally Posted by rockdawg21
Well, this was part of the bailout from Bush, but Obama is going to just continue with this crap. Even though his campaign was all about change, it's still more of the same - bailouts for bad companies. The only change people will see from Obama's administration will be in their pockets.
It's pretty sad though that we even have to clarify which bail out it is!
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Old 03-09-2009, 06:31 PM
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rockdawg21 rockdawg21 is offline
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Originally Posted by CAVEMAN
It's pretty sad though that we even have to clarify which bail out it is!
LOL, well, if I didn't do it, Moose would have. I was just doing Moose a favor; now he has to think of a different retort
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Old 03-09-2009, 06:35 PM
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Originally Posted by rockdawg21
LOL, well, if I didn't do it, Moose would have. I was just doing Moose a favor; now he has to think of a different retort


He'll find something to exploit anyway! Here is an interesting article I found:

http://www.dcexaminer.com/politics/O...-spending.html
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Old 03-09-2009, 06:41 PM
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Originally Posted by CAVEMAN


He'll find something to exploit anyway! Here is an interesting article I found:

http://www.dcexaminer.com/politics/O...-spending.html
Yeah, that's been discussed already. Obama's a hypocrite and so are many others who support him. He's selling away our, our children, our grandchildren, etc. futures away. It's almost like it's a game to him. "Hey, let's start bringing ourselves in debt and see if this works." Well, I don't know about you guys, but swiping my credit card over and over never helped me get out of debt.

Damn, I'm getting angry just thinking about this. Good thing I'm going to the gym in a few minutes, should be a great workout!
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Old 03-09-2009, 06:45 PM
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Originally Posted by rockdawg21
Yeah, that's been discussed already. Obama's a hypocrite and so are many others who support him.
I miss all the good ones.........

It just seems that his supporters are blindly still behind him 100%! UNREAL!
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